Major Management Challenges and Program Risks

This publication is part of GAO's performance and accountability series which provides a comprehensive assessment of government management, particularly the management challenges and program risks confronting federal agencies. Using a "performance-based management" approach, this landmark set of reports focuses on the results of government programs--how they affect the American taxpayer--rather than on the processes of government. This approach integrates thinking about organization, product and service delivery, use of technology, and human capital practices into every decision about the results that the government hopes to achieve. The series includes an overview volume discussing governmentwide management issues and 20 individual reports on the challenges facing specific cabinet departments and independent agencies. The reports take advantage of the wealth of new information made possible by management reform legislation, including audited financial statements for major federal agencies, mandated by the Chief Financial Officers Act, and strategic and performance plans required by the Government Performance and Results Act. In a companion volume to this series, GAO also updates its high-risk list of government operations and programs that are particularly vulnerable to waste, fraud, abuse, and mismanagement.

GAO noted that: (1) USPS has been hampered by long-standing challenges in labor-management relations that, in many instances, resulted from autocratic management styles, adversarial attitudes of employees, unions, and management, and an inappropriate and inadequate performance management system; (2) USPS' continued success will depend heavily on its ability to control operating costs, strengthen internal controls, and ensure the integrity of its services; (3) the USPS has recognized that it needs aggressive cost management and strong and effective internal operating controls to avoid unwarranted costs; (4) however, GAO has reported on the need to control costs and protect postal revenues in several areas; (5) USPS has experienced cost overruns on a number of major capital projects and failed to realize some opportunities to achieve savings; (6) major mailers and the public remain concerned about obtaining quality service at reasonable prices; (7) the USPS has committed to developing reliable indicators of postal performance corresponding to each of its performance goals so that it can track progress and meet the requirements of the Results Act; (8) USPS faces a major challenge in updating its computer systems to correctly identify dates beginning in the year 2000 and thus avoid malfunctions that could disrupt mail delivery; (9) USPS has made progress in addressing postal labor-management relations; (10) in addition, GAO has reported that USPS has made progress in implementing automation designed to improve the efficiency of letter carriers, and USPS has also reported taking steps to tighten internal controls over postal revenues and expenditures; (11) in the area of providing quality service, USPS has reported taking steps to improve mail service for several classes of mail, develop a more complete set of performance measures, and safeguard the integrity of performance data; and (12) USPS has stated that it is assigning a high priority to addressing the year 2000 problem.